Alkermes plc announced it has entered into a definitive agreement acquiring Avadel Pharmaceuticals. The acquisition was approved by both companies’ boards, with the deal expected to close in the first quarter of 2026.

"This transaction represents a pivotal step in Alkermes' strategic evolution. With the acquisition of Avadel, we are able to accelerate our commercial entry into the sleep medicine market at a critical inflection point as we prepare to advance alixorexton into a phase 3 program in narcolepsy. Avadel's innovative portfolio, commercial capabilities and dedicated employees provide a strong foundation for growth in this therapeutic area. Enabled by our strong balance sheet, this all-cash transaction enhances our revenue growth profile and is expected to be immediately accretive, reinforcing our commitment to delivering long-term value for shareholders," Richard Pops, chief executive officer of Alkermes, said in a press release.

What are the details of the deal?

Per the terms of the agreement, Alkermes will purchase Avadel for an estimated total value of $2.1 Billion, or $20 per share, which represents a 12% premium to Avadel’s closing price on October 21, 2025.¹ Alkermes is expected to finance the acquisition with cash on hand, supplemented by the issuance of new debt.¹ The transaction represents a financial and strategic opportunity, leveraging Alkermes' existing commercial expertise and operational infrastructure, while adding new capabilities in rare disease treatment development, and is subject to certain regulatory approvals, and approvals by Avadel's shareholders. ¹

The acquisition also includes Avadel's FDA-approved product Lumryz (sodium oxybate), a treatment solution for cataplexy and or excessive daytime sleepiness in patients over the age of seven, with narcolepsy, expanding Alkermes' commercial portfolio.¹ The acquisition accelerates Alkermes' entry into the sleep medicine market, while also enhancing its ability to unlock the full potential of its late-stage development pipeline, which focuses on central disorders of hypersomnolence.¹

Strategic rationale behind Alkermes’ acquisition

One of the driving forces in the agreement was the acquisition of Lumryz, which immediately gives Alkermes a strong foothold in the commercial sleep medication market, and holds a strong growth potential.¹ The acquisition also provides a foundation from Avadel’s commercial infrastructure and experience in the rare disease space, for the launch of alixorexton, Alkermes’ orexin 2 receptor agonist candidate, which is in development as a treatment for narcolepsy and idiopathic hypersomnia.¹

Avadel’s integration into Alkermes operations is expected to accelerate synergies and operational efficiencies as Alkermes prepares for the launch of alixorexton. The deal is also anticipated to bolster Alkermes growth profile and profitability, following the transactions closing.¹

Additionally, the financial strength and capabilities of the combined organization is expected to support Alkermes’ broad development strategy for its portfolio of orexin 2 receptor agonists, which includes ALKS 4510 and ALKS 7290, with both currently undergoing phase I studies.¹

The agreement aims to combine resources to advance clinical studies supporting potential label expansion opportunities for Lumryz, which currently being studied in a phase III clinical trial in patients with idiopathic hypersomnia.¹ The acquisition is also expected to help the potential advancement of valiloxybate, Avadel's in-licensed salt-free, once-at-bedtime oxybate candidate in clinical development.¹

"This transaction represents a compelling outcome for our shareholders and a powerful validation of our strategy, execution, commercial capabilities and the differentiated value of LUMRYZ™. We've built a company deeply committed to transforming the lives of people living with narcolepsy, and I'm incredibly proud of what our team has accomplished. Alkermes shares our passion for innovation and patient impact and, together, we will continue this important work on behalf of people living with central disorders of hypersomnolence," said Greg Divis, chief executive officer of Avadel.

Sources

1. Alkermes plc Announces Agreement to Acquire Avadel Pharmaceuticals plc Alkermes plc October 22,2025 https://investor.alkermes.com/news-releases/news-release-details/alkermes-plc-announces-agreement-acquire-avadel-pharmaceuticals